the federal government prempted efforts by many states to reform their lending laws to reduce predatory lending, righties don't ever post on this topic because it was done at the very beginning of the financial/housing crisis by our buddies in the bush administration... yes... it was bush's fault!!
"What happened once the preemption took effect? The results were predictable: The share of high-cost loans that were preempted in APL states increased from 16 percent in 2004 to 46 percent in 2007. These high cost/sub-prime loans defaulted in unusually higher numbers. Hence, suggests the study, such preemption is to blame, at least in part, for the current foreclosure crisis."
This post was edited on 4/17 9:56 AM by Nittany.Lion
http://www.ritholtz.com/blog/2009/10/pre-emption-of-state-anti-predatory-lending-laws-led-to-more-foreclosures/
"What happened once the preemption took effect? The results were predictable: The share of high-cost loans that were preempted in APL states increased from 16 percent in 2004 to 46 percent in 2007. These high cost/sub-prime loans defaulted in unusually higher numbers. Hence, suggests the study, such preemption is to blame, at least in part, for the current foreclosure crisis."
This post was edited on 4/17 9:56 AM by Nittany.Lion
http://www.ritholtz.com/blog/2009/10/pre-emption-of-state-anti-predatory-lending-laws-led-to-more-foreclosures/
